GovernmentType: Republic.Independence: June 26, 1960.Constitution: Entered into force in March 1998.Branches: Executive--president, prime minister, cabinet. Legislative--National Assembly and Senate. Judicial--Supreme Court, High Court of Justice, Constitutional High Court.Subdivisions: Six autonomous provinces (faritany).Political parties: Eight parties won seats in the December 2002 National Assembly elections. The ruling party I Love Madagascar (TIM) holds a solid majority of seats; others holding seats include Be Judged by Your Work (AVI), Rally for Social Democracy (RSPD), Pillar and Podium for the Development of Madagascar (AREMA), Militants for the Development of Madagascar (MFM), Reflection and Action Group for Development in Madagascar (GRAD-Iloafo), Economic Liberalism and Democratic Action for Reconstruction Party (LEADER-Fanilo), and the regional party For A Mature Tamatave. There also dozens of minor parties.Suffrage: Universal at 18.National holiday: June 26.

PEOPLE AND HISTORYMadagascar's population is predominantly of mixed Asian and African origin. Recent research suggests that the island was uninhabited until Indonesian seafarers arrived in roughly the first century A.D., probably by way of southern India and East Africa, where they acquired African wives and slaves. Subsequent migrations from both the Pacific and Africa further consolidated this original mixture, and 18 separate tribal groups emerged. Asian features are most predominant in the central highlands people, the Merina (3 million) and the Betsileo (2 million); the coastal people are of more clearly African origin.

The largest coastal groups are the Betsimisaraka (1.5 million) and the Tsimihety and Sakalava (700,000 each).

The Malagasy language is of Malayo-Polynesian origin and is generally spoken throughout the island. French is spoken among the educated population of this former French colony. English is becoming more widely spoken, and in 2003 the government began a pilot project of introducing the teaching of English into the primary grades of 44 schools, with hopes of taking the project nationwide.

Most people practice traditional religions, which tend to emphasize links between the living and the dead. They believe that the dead join their ancestors in the ranks of divinity and that ancestors are intensely concerned with the fate of their living descendants. The Merina and Betsileo reburial practice of famadihana, or "turning over the dead" celebrate this spiritual communion. In this ritual, relatives' remains are removed from the family tomb, rewrapped in new silk shrouds, and returned to the tomb following festive ceremonies in their honor.

About 45% of the Malagasy are Christian, divided almost evenly between Roman Catholic and Protestant. Many incorporate the cult of the dead with their religious beliefs and bless their dead at church before proceeding with the traditional burial rites. They also may invite a pastor to attend a famadihana. While many Christians continue these practices, others consider them to be superstitions that should be abandoned. Many of the Christian churches are influential in politics. In the coastal regions of the provinces of Mahajanga and Antsiranana (Diego Suarez), Muslims constitute a significant minority. Muslims are divided between those of Malagasy ethnicity, Indo-Pakistanis, and Comorians.

The written history of Madagascar began in the seventh century A.D., when Arabs established trading posts along the northwest coast. European contact began in the 1500s, when Portuguese sea captain Diego Dias sighted the island after his ship became separated from a fleet bound for India. In the late 17th century, the French established trading posts along the east coast. From about 1774 to 1824, it was a favorite haunt for pirates, including Americans, one of whom brought Malagasy rice to South Carolina.

Beginning in the 1790s, Merina rulers succeeded in establishing hegemony over the major part of the island, including the coast. In 1817, the Merina ruler and the British governor of Mauritius concluded a treaty abolishing the slave trade, which had been important in Madagascar's economy. In return, the island received British military and financial assistance. British influence remained strong for several decades, during which the Merina court was converted to Presbyterianism, Congregationalism, and Anglicanism.

The British accepted the imposition of a French protectorate over Madagascar in 1885 in return for eventual control over Zanzibar (now part of Tanzania) and as part of an overall definition of spheres of influence in the area. Absolute French control over Madagascar was established by military force in 1895-96, and the Merina monarchy was abolished.

Malagasy troops fought in France, Morocco, and Syria during World War I. After France fell to the Germans, the Vichy government administered Madagascar. British troops occupied the strategic island in 1942 to preclude its seizure by the Japanese. The Free French received the island from the United Kingdom in 1943.

In 1947, with French prestige at low ebb, a nationalist uprising was suppressed after several months of bitter fighting. The French subsequently established reformed institutions in 1956 under the Loi Cadre (Overseas Reform Act), and Madagascar moved peacefully toward independence. The Malagasy Republic was proclaimed on October 14, 1958, as an autonomous state within the French Community. A period of provisional government ended with the adoption of a constitution in 1959 and full independence on June 26, 1960.

GOVERNMENTIn March 1998, Malagasy voters approved a revised Constitution. The principal institutions of the Republic of Madagascar are a presidency, a parliament (National Assembly and Senate), a prime ministry and cabinet, and an independent judiciary. The president is elected by direct universal suffrage for a 5-year term, renewable twice.

The National Assembly consists of 160 representatives elected by direct vote every 5 years. The last election was held in December 2002. The Senate consists of 90 senators, two-thirds elected by local legislators and other Grand Electors and one-third appointed by the president, all for 6-year terms. A prime minister and council of ministers carries out day-to-day management of government. The president appoints the prime minister.

The prime minister and members of Parliament initiate legislation, and the government executes it. The president can dissolve the National Assembly. For its part, the National Assembly can pass a motion of censure and require the prime minister and council of ministers to step down. The Constitutional Court approves the constitutionality of new laws.

Territorial administration is to be determined by legislation. In an effort to decentralize administration, the Constitution calls for the six provinces (faritany) to become autonomous. The six provinces are Antananarivo, Mahajanga, Antsiranana, Toamasina, Fianarantsoa, and Toliary.

Principal Government OfficialsPresident--Marc RavalomananaPrime Minister--Jacques SyllaPresident of the Senate--Guy Rajemison RakotomaharoPresident of National Assembly--Jean Lahiniriko Minister of Defense--General Petera BehajainaMinister of Economy, Finance and Budget--Benjamin Radavidson AndriamparanyMinister of Foreign Affairs--Marcel RanjevaMinister of Transport and Public Works--Roland RandimampiononaMinister of Decentralization and Territorial Administration--Angelin RandrianarisonMinister of Justice--Lala Henriette RatsiharovalaAmbassador to the U.S.--Narisoa RajaonarivonyAmbassador to the UN--Zina Andrianarivelo-Razafy

Madagascar maintains an embassy in the United States at 2374 Massachusetts Avenue NW, Washington, DC 20008 (tel. 202-265-5525).

POLITICAL CONDITIONSMadagascar's first President, Philibert Tsiranana, was elected when his Social Democratic Party gained power at independence in 1960 and was reelected without opposition in March 1972. However, he resigned only 2 months later in response to massive antigovernment demonstrations. The unrest continued, and Tsiranana's successor, Gen. Gabriel Ramanantsoa, resigned on February 5, 1975, handing over executive power to Lt. Col. Richard Ratsimandrava, who was assassinated 6 days later. A provisional military directorate then ruled until a new government was formed in June 1975, under Didier Ratsiraka.

During the 16 subsequent years of President Ratsiraka's rule, Madagascar continued under a government committed to revolutionary socialism based on the 1975 Constitution establishing a highly centralized state. National elections in 1982 and 1989 returned Ratsiraka for a second and third 7-year presidential term. For much of this period, only limited and restrained political opposition was tolerated, with no direct criticism of the president permitted in the press.

With an easing of restrictions on political expression, beginning in the late 1980s, the Ratsiraka regime came under increasing pressure to make fundamental changes. In response to a deteriorating economy, Ratsiraka relaxed socialist economic policies and instituted some liberal, private-sector reforms. These, along with political reforms like the elimination of press censorship in 1989 and the formation of more political parties in 1990, were insufficient to placate a growing opposition movement known as Hery Velona or "Active Forces." A number of already existing political parties and their leaders, among them Albert Zafy and Rakotoniaina Manandafy, anchored this movement which was especially strong in Antananarivo and the surrounding high plateau.

In response to largely peaceful mass demonstrations and crippling general strikes, Ratsiraka replaced his prime minister in August 1991 but suffered an irreparable setback soon thereafter when his troops fired on peaceful demonstrators marching on his suburban palace, killing more than 30.

In an increasingly weakened position, Ratsiraka acceded to negotiations on the formation of a transitional government. The resulting "Panorama Convention" of October 31, 1991, stripped Ratsiraka of nearly all of his powers, created interim institutions, and set an 18-month timetable for completing a transition to a new form of constitutional government. The High Constitutional Court was retained as the ultimate judicial arbiter of the process.

In March 1992, a widely representative National Forum organized by the Malagasy Christian Council of Churches (FFKM) drafted a new Constitution. Troops guarding the proceedings clashed with pro-Ratsiraka "federalists" who tried to disrupt the forum in protest of draft constitutional provisions preventing the incumbent president from running again. The text of the new Constitution was put to a nationwide referendum in August 1992 and approved by a wide margin, despite efforts by federalists to disrupt balloting in several coastal areas.

Presidential elections were held on November 25, 1992, after the High Constitutional Court had ruled, over active forces objections, that Ratsiraka could become a candidate. Runoff elections were held in February 1993, and the leader of the Hery Velona movement, Albert Zafy, defeated Ratsiraka. Zafy was sworn in as President on March 27, 1993. After President Zafy's impeachment by the National Assembly in 1996 and the short quasi-presidency of Norbert Ratsirahonana, the 1997 elections once again pitted Zafy and Ratsiraka, with Ratsiraka this time emerging victorious. A National Assembly dominated by members of President Ratsiraka'a political party AREMA subsequently passed the 1998 Constitution, which considerably strengthened the presidency.

In December 2001, a presidential election was held in which both major candidates claimed victory. The Ministry of the Interior declared incumbent Ratsiraka of the AREMA party victorious. Marc Ravalomanana contested the results and claimed victory. A political crisis followed in which Ratsiraka supporters cut major transport routes from the primary port city to the capital city, a stronghold of Ravalomanana support. Sporadic violence and considerable economic disruption continued until July 2002 when Ratsiraka and several of his prominent supporters fled to exile in France. In addition to political differences, ethnic differences played a role in the crisis and continue to play a role in politics. Ratsiraka is from the coastal Betsimisarka tribe and Ravalomanana comes from the highland Merina tribe.

After the end of the 2002 political crisis, President Ravalomanana began many reform projects, forcefully advocating "rapid and durable development" and the launching of a battle against corruption. December 2002 legislative elections gave his newly formed TIM (Tiako-i-Madagasikara--I Love Madagascar) Party a commanding majority in the National Assembly. November 2003 municipal elections were conducted freely, returning a majority of supporters of the president, but also significant numbers of independent and regional opposition figures.

Following the crisis of 2002, the President replaced provincial governors with appointed PDSs (Presidents des Delegations Speciales). Subsequent legislation established a structure of 22 regions to decentralize administration. In September 2004, the government named 22 Regional Chiefs, reporting directly to the President, to implement its decentralization plans. Financing and specific powers for the regional administrations remain to be clarified.

ECONOMYStructural reforms began in the late 1980s, initially under pressure form international financial institutions. An initial privatization program (1988-1993) and the development of an export processing zone (EPZ) regime in the early 1990s were key milestones in this effort. A period of significant stagnation from 1991-96 was followed by 5 years of solid economic growth and accelerating foreign investment, driven by a second wave of privatizations and EPZ development. Although structural reforms advanced, governance remained weak and perceived corruption in Madagascar was extremely high. During the period of solid growth from 1997 through 2001, poverty levels remained stubbornly high, especially in rural areas. A six-month political crisis triggered by a dispute over the outcome of the presidential elections held in December 2001 virtually halted economic activity in much of the country in the first half of 2002. Real GDP dropped 12.7% for the year 2002, inflows of foreign investment dropped sharply, and the crisis tarnished Madagascar's budding reputation as an AGOA standout and a promising place to invest. Following resolution of the crisis, the economy rebounded with GDP growth of over 9% in 2003. Currency depreciation and rising inflation in 2004 hampered economic performance; although final figures are not yet available, growth for the year is estimated to be 5%, with 15% inflation.

Following the 2002 political crisis, the government attempted to set a new course and build confidence, in coordination with international financial institutions and the donor community. Madagascar developed a recovery plan in collaboration with the private sector and donors and presented it at a "Friends of Madagascar" conference organized by the World Bank in Paris in July 2002. Donor countries demonstrated their confidence in the new government by pledging $1 billion in assistance over five years. The Malagasy Government identified road infrastructure as its principle priority and underlined its commitment to public-private partnership by establishing a joint public-private sector steering committee.

In 2000, Madagascar embarked on the preparation of a Poverty Reduction Strategy Paper (PRSP) under the Heavily Indebted Poor Countries (HIPC) Initiative. The boards of the IMF and World Bank agreed in December 2000 that the country had reached the decision point for debt relief under the HIPC Initiative and defined a set of conditions for Madagascar to reach the completion point. In October 2004, the boards of the IMF and the World Bank determined that Madagascar had reached the completion point under the enhanced HIPC Initiative.

The Madagascar-U.S. Business Council was formed in Madagascar in 2002. The U.S.-Madagascar Business Council was formed in the United States in May 2003, and the two organizations continue to explore ways to work for the benefit of both groups.

The government of President Ravalomanana is aggressively seeking foreign investment and is tackling many of the obstacles to such investment, including combating corruption, reforming land-ownership laws, encouraging study of American and European business techniques, and active pursuit of foreign investors. President Ravalomanana rose to prominence through his agro-foods TIKO company, and is known for attempting to apply many of the lessons learned in the world of business to running the government.

FOREIGN RELATIONSMadagascar, which has historically been perceived as on the margin of mainstream African affairs, eagerly rejoined the African Union in July 2003 after a 14-month hiatus triggered by the 2002 political crisis. From 1978 until 1991, then-President Ratsiraka emphasized independence and nonalignment and followed an "all points" policy stressing ties with socialist and radical regimes, including North Korea, Cuba, Libya, and Iran. Taking office in 1993, President Albert Zafy expressed his desire for diplomatic relations with all countries. Early in his tenure, he established formal ties with South Korea and sent emissaries to Morocco.

Starting in 1997, globalization encouraged the government and President Ratsiraka to adhere to market-oriented policies and to engage world markets. External relations reflect this trend, although Madagascar's physical isolation and strong traditional insular orientation have limited its activity in regional economic organizations and relations with its East African neighbors. It enjoys closer and generally good relations with its Indian Ocean neighbors--Mauritius, R�union, and the Comoros Islands. Active relationships with Europe, especially France, Germany, and Switzerland, as well as with Britain, Russia, Japan, India, and China have been strong since independence.

President Ravalomanana has stated that he welcomes relations with all countries interested in helping Madagascar to develop. He has consciously sought to strengthen relations with Anglophone countries as a means of balancing traditionally strong French influence.

U.S.-MALAGASY RELATIONSRelations with the United States date to the middle 1800s. The two countries concluded a commercial convention in 1867 and a treaty of peace, friendship, and commerce in 1881. Traditionally warm relations suffered considerably during the 1970s, when Madagascar expelled the U.S. ambassador, closed a NASA tracking station, and nationalized two U.S. oil companies. In 1980, relations at the ambassadorial level were restored.

Throughout the troubled period, commercial and cultural relations remained active. In 1990, Madagascar was designated as a priority aid recipient, and assistance increased from $15 million in 1989 to $40 million in 1993. Recent U.S. assistance has contributed to a population census and family planning programs; conservation of Madagascar's remarkable biodiversity, private sector development, agriculture, democracy and governance initiatives; and media training. The Ravalomanana government is especially positive about ties with the United States.

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